JPYC lending markets are now live on Morpho (Polygon), introducing Japanese-yen–denominated lending to one of the most modular and risk-isolated lending protocols in DeFi.
This deployment includes both JPYC lending markets and a curator-managed JPYC vault, launched in collaboration with Steakhouse Financial and PAO TECH Labs.
The goal is to enable JPYC lenders to earn yield while relying on explicit, conservative risk controls from day one.
The JPYC Vault link is following.
Morpho x Steakhouse PaoTech JPYC vault. Steakhouse PaoTech JPYC lends against blue chip collaterals.
The launch consists of two components:
JPYC Lending Markets on Morpho
Steakhouse PaoTech JPYC Vault
All markets share the same core structure:
Loan asset: JPYC
Collateral assets: USDC, WETH, WBTC
Borrowers obtain JPYC by posting one of the approved collateral assets, while lenders earn yield by supplying JPYC to the protocol.
The market links are following
Each JPYC market on Morpho is an isolated market where:
JPYC is the only loan asset
A single asset (USDC, WETH, or WBTC) is accepted as collateral
Risk parameters are defined at market creation and do not cross between markets
This means:
JPYC supplied by lenders accrues interest
Collateral assets do not earn interest
Risk is contained per market and per collateral type
By separating markets by collateral asset, Morpho allows risk to be evaluated and managed independently for each borrower profile and market condition.
The initial collateral set is intentionally limited.
USDC, WETH, and WBTC were selected because they offer:
Deep on-chain liquidity
Mature pricing infrastructure
Predictable liquidation behavior under stress
Rather than maximizing the number of supported assets at launch, the focus is on liquidation reliability and capital preservation while JPYC on-chain liquidity continues to develop.
The Steakhouse–PAO TECH JPYC Vault is designed for JPYC lenders.
Instead of supplying JPYC directly into individual markets, users can deposit JPYC into the vault. The vault then:
Aggregates JPYC deposits
Allocates JPYC across multiple Morpho markets where JPYC is lent out against USDC, WETH, or WBTC collateral
Manages exposure under Steakhouse’s curated risk framework
This allows JPYC lenders to gain diversified exposure to different borrower types while relying on professional risk management, rather than actively monitoring each market themselves.
The vault operates under Morpho’s curator model:
Curators determine which markets are enabled and how much JPYC can be allocated to each
Allocators manage operational allocation within those limits
Configuration changes are subject to on-chain timelocks, ensuring transparency and predictability
As a result, vault behavior is constrained by explicit parameters rather than discretionary actions.
At launch, the JPYC markets share conservative, safety-first settings:
Liquidation LTV (LLTV): 86%
Liquidation penalty: ~4.38% (as displayed in the Morpho UI)
Oracle: Chainlink [USDC or WETH or WBTC]/USD + Chainlink JPY/USD
Interest rate model: AdaptiveCurveIRM (dynamic rates)
These parameters are designed to prioritize solvency and liquidation executability rather than maximum capital efficiency. These parameters are immutable at the market level and cannot be modified after deployment.
The JPYC lending markets and vault are designed to evolve over time.
additional markets, different collateral types, and updated vault allocation policies may be introduced — always within Morpho’s isolated-market framework.
In parallel, additional JPYC-centric primitives are under active development.
Markets where JPYC itself is used as collateral are planned as a next step.
PAO TECH Labs is currently working with Steakhouse Financial to conduct due diligence on JPYC collateralization, including:
liquidation feasibility
oracle design considerations
parameterization appropriate for JPYC’s liquidity profile
These markets will only be deployed once the required risk reviews and operational checks are completed.
Beyond passive JPYC lending, strategy vaults are also planned.
These vaults are designed to:
use JPYC as collateral
borrow assets such as USDC
deploy borrowed liquidity into selected DeFi strategies
The objective is to enable JPYC holders to access structured, on-chain yield strategies while keeping risk management explicit and transparent.
As with the lending markets, these vaults will be introduced incrementally, with conservative parameters and clear separation between lending risk and strategy risk.
PAO TECH Labs is a curator and DeFi infrastructure team supporting JPYC’s integration into global on-chain financial markets.
The team focuses on designing risk-aware lending and yield primitives where JPYC can serve as a functional JPY-denominated asset.
This article is provided for informational and technical purposes only. It does not constitute investment advice, an offer, or a solicitation to invest in any product or strategy. Nothing in this article should be interpreted as a recommendation to use any protocol, vault, or financial instrument. Users are solely responsible for assessing the risks of interacting with decentralized protocols, including smart contract risk, market risk, and regulatory considerations in their respective jurisdictions.
This content is not directed at, and is not intended for, residents of Japan. No offering, solicitation, or marketing activity is conducted toward users located in Japan, and this article should not be relied upon by any person in Japan for any purpose.
Market-level parameters on Morpho are immutable once deployed. However, the allocation of JPYC within the vault — including which markets are enabled and how capital is distributed — may change over time according to the curator-defined risk framework and on-chain governance processes.
JPYC lending markets are now live on Morpho (Polygon), introducing Japanese-yen–denominated lending to one of the most modular and risk-isolated lending protocols in DeFi.
This deployment includes both JPYC lending markets and a curator-managed JPYC vault, launched in collaboration with Steakhouse Financial and PAO TECH Labs.
The goal is to enable JPYC lenders to earn yield while relying on explicit, conservative risk controls from day one.
The JPYC Vault link is following.
Morpho x Steakhouse PaoTech JPYC vault. Steakhouse PaoTech JPYC lends against blue chip collaterals.
The launch consists of two components:
JPYC Lending Markets on Morpho
Steakhouse PaoTech JPYC Vault
All markets share the same core structure:
Loan asset: JPYC
Collateral assets: USDC, WETH, WBTC
Borrowers obtain JPYC by posting one of the approved collateral assets, while lenders earn yield by supplying JPYC to the protocol.
The market links are following
Each JPYC market on Morpho is an isolated market where:
JPYC is the only loan asset
A single asset (USDC, WETH, or WBTC) is accepted as collateral
Risk parameters are defined at market creation and do not cross between markets
This means:
JPYC supplied by lenders accrues interest
Collateral assets do not earn interest
Risk is contained per market and per collateral type
By separating markets by collateral asset, Morpho allows risk to be evaluated and managed independently for each borrower profile and market condition.
The initial collateral set is intentionally limited.
USDC, WETH, and WBTC were selected because they offer:
Deep on-chain liquidity
Mature pricing infrastructure
Predictable liquidation behavior under stress
Rather than maximizing the number of supported assets at launch, the focus is on liquidation reliability and capital preservation while JPYC on-chain liquidity continues to develop.
The Steakhouse–PAO TECH JPYC Vault is designed for JPYC lenders.
Instead of supplying JPYC directly into individual markets, users can deposit JPYC into the vault. The vault then:
Aggregates JPYC deposits
Allocates JPYC across multiple Morpho markets where JPYC is lent out against USDC, WETH, or WBTC collateral
Manages exposure under Steakhouse’s curated risk framework
This allows JPYC lenders to gain diversified exposure to different borrower types while relying on professional risk management, rather than actively monitoring each market themselves.
The vault operates under Morpho’s curator model:
Curators determine which markets are enabled and how much JPYC can be allocated to each
Allocators manage operational allocation within those limits
Configuration changes are subject to on-chain timelocks, ensuring transparency and predictability
As a result, vault behavior is constrained by explicit parameters rather than discretionary actions.
At launch, the JPYC markets share conservative, safety-first settings:
Liquidation LTV (LLTV): 86%
Liquidation penalty: ~4.38% (as displayed in the Morpho UI)
Oracle: Chainlink [USDC or WETH or WBTC]/USD + Chainlink JPY/USD
Interest rate model: AdaptiveCurveIRM (dynamic rates)
These parameters are designed to prioritize solvency and liquidation executability rather than maximum capital efficiency. These parameters are immutable at the market level and cannot be modified after deployment.
The JPYC lending markets and vault are designed to evolve over time.
additional markets, different collateral types, and updated vault allocation policies may be introduced — always within Morpho’s isolated-market framework.
In parallel, additional JPYC-centric primitives are under active development.
Markets where JPYC itself is used as collateral are planned as a next step.
PAO TECH Labs is currently working with Steakhouse Financial to conduct due diligence on JPYC collateralization, including:
liquidation feasibility
oracle design considerations
parameterization appropriate for JPYC’s liquidity profile
These markets will only be deployed once the required risk reviews and operational checks are completed.
Beyond passive JPYC lending, strategy vaults are also planned.
These vaults are designed to:
use JPYC as collateral
borrow assets such as USDC
deploy borrowed liquidity into selected DeFi strategies
The objective is to enable JPYC holders to access structured, on-chain yield strategies while keeping risk management explicit and transparent.
As with the lending markets, these vaults will be introduced incrementally, with conservative parameters and clear separation between lending risk and strategy risk.
PAO TECH Labs is a curator and DeFi infrastructure team supporting JPYC’s integration into global on-chain financial markets.
The team focuses on designing risk-aware lending and yield primitives where JPYC can serve as a functional JPY-denominated asset.
This article is provided for informational and technical purposes only. It does not constitute investment advice, an offer, or a solicitation to invest in any product or strategy. Nothing in this article should be interpreted as a recommendation to use any protocol, vault, or financial instrument. Users are solely responsible for assessing the risks of interacting with decentralized protocols, including smart contract risk, market risk, and regulatory considerations in their respective jurisdictions.
This content is not directed at, and is not intended for, residents of Japan. No offering, solicitation, or marketing activity is conducted toward users located in Japan, and this article should not be relied upon by any person in Japan for any purpose.
Market-level parameters on Morpho are immutable once deployed. However, the allocation of JPYC within the vault — including which markets are enabled and how capital is distributed — may change over time according to the curator-defined risk framework and on-chain governance processes.
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